Completing Form BIRSP3 for energy efficient building installation in Hong Kong
How to file Form BIRSP3 for tax deductions on energy efficient building installations in Hong Kong, covering eligibility and procedures.
BIRSP3 at a glance
- Official title
- Deduction for expenditure on energy efficient building installation
- Issued by
- Inland Revenue Department
We link the issuing authority's own index rather than hosting a copy, because the form is revised there and an out-of-date copy is worse than none.
Form BIRSP3 Energy Efficient Building Installation Hong Kong
File Form BIRSP3 with the Inland Revenue Department (IRD) to claim a profits tax deduction for capital expenditure on eligible energy efficient building installations. Submit this supplementary form with your annual profits tax return to reduce assessable profits for qualifying green building investments.
Eligible Energy Efficient Building Installation Expenditure
Section 16I of the Inland Revenue Ordinance (Cap. 112) permits a deduction for capital spending on an energy efficient installation within a building you own or use to produce assessable profits. The installation must be a fixture or structure that improves the building's energy performance. Eligible installations include energy efficient lighting systems, high-efficiency heating, ventilation and air conditioning (HVAC) systems, and building management systems that monitor and control energy use. They also cover renewable energy installations such as solar photovoltaic panels, solar water heating systems, energy efficient lifts and escalators, and insulation materials applied to the building envelope.
This expenditure must be capital in nature. It must be incurred on acquiring or installing the asset, not on repairs or maintenance. The installation must be new or a replacement and used wholly and exclusively to produce chargeable profits.
BIRSP3 Form Guide
On the BIRSP3 form, provide the taxpayer's name, tax reference number, and the year of assessment for the claim. For each installation, enter a description, the date it was brought into use, and the capital expenditure incurred. Then enter the total deduction claimed.
Complete the form in English or Chinese. Sign it yourself or through an authorised representative. The IRD may request supporting documents like invoices, contracts, or technical specifications to verify the expenditure.
Energy Efficient Building Tax Deduction
This is a one-off deduction in the year of assessment the expenditure is incurred. It equals the full amount of qualifying capital expenditure. The installation must be brought into use that year. The expenditure cannot have been claimed under any other Inland Revenue Ordinance provision. You must own or occupy the building to produce assessable profits.
The deduction lowers your assessable profits and profits tax liability. If the deduction exceeds assessable profits, carry the excess forward to set off against future profits.
Hong Kong Form BIRSP3 Filing Requirements
File Form BIRSP3 with your annual profits tax return (BIR51 for corporations, BIR52 for others). The filing deadline is the time specified on the return, usually one month from its issue date. The IRD may grant extensions upon application.
File electronically through the Business Tax Portal. For electronic filing, submit the form and supporting documents in iXBRL format. Ensure your financial statements and tax computation are correctly tagged in iXBRL for efficient processing. Keep a certified true copy if the original is lost or damaged. Retain all supporting documents for at least seven years after the relevant year of assessment.
Green Building Tax Deduction Benefits
This deduction provides immediate tax relief in the year of expenditure, reducing your profits tax liability. Unlike depreciation allowances, it allows a full deduction of the entire capital expenditure. The incentive encourages adopting energy efficient technologies, lowering environmental impact and operating costs, and improves cash flow by freeing up funds for further investment.
The deduction applies to expenditure incurred on or after 1 April 2011. Consult IRD guidelines on eligible expenditure before making a claim.
Completing Form BIRSP3
Enter your name and tax reference number as shown on the profits tax return. Indicate the year of assessment. For each installation, provide a clear description, the date it was brought into use, and the capital expenditure incurred. Calculate the total deduction claimed and enter it. Sign and date the form, then attach it to your profits tax return before filing with the IRD.
Be prepared to provide invoices, contracts, or technical reports if the IRD requests additional information for a complex or seemingly non-qualifying claim.
Filing Through the Business Tax Portal
Log in to the Business Tax Portal with your eTAX account. Select the profits tax return for the relevant year of assessment. Upload the completed Form BIRSP3 in iXBRL format, attaching your financial statements and tax computation in iXBRL format. Submit everything electronically.
Electronic filing is mandatory for relevant entities of in-scope multinational enterprise groups from the year of assessment 2025-26. The IRD intends to achieve full electronic filing by 2030.
Record Keeping and Compliance
Maintain proper records for all expenditure. Keep invoices and receipts, supplier and installer contracts, technical specifications and energy performance certificates, and evidence the installation is used to produce assessable profits.
The IRD may audit claims. Incorrect claims can result in additional tax, penalties, and interest.
Contacting the Inland Revenue Department
For enquiries about Form BIRSP3 or the deduction, contact the IRD's office. The IRD website provides contact details and guidance notes. You may also seek advice from a tax professional or accountant to ensure compliance with Cap. 112.
How to fill out Form BIRSP3
Page one of the official form. Every field named below appears on it in the same order.
Part 1 - Type of claim
Tick the box that matches the basis period in which the expenditure was incurred.
- Year of assessment: select the year (e.g. 2024/25) for which the deduction is claimed.
- Basis period: state the date from and date to of the basis period that corresponds to that year of assessment. This period must be the same one used in your profits tax return for that year.
Part 2 - Taxpayer and building details
- Name of taxpayer: the legal name of the person or entity that incurred the expenditure.
- Business registration number: the number shown on the Business Registration Certificate.
- Name of building: the common or official name of the building where the qualifying installation is located.
- Address of building: the full street address, including district.
- Name of the person who paid for the installation: if the taxpayer is not the payer, provide the payer’s name. If the taxpayer paid directly, enter “same as taxpayer”.
Part 3 - Description of the energy efficient building installation
- Type of installation: select from the options listed (e.g. lighting, air conditioning, electrical, lift/escalator).
- Date the expenditure was incurred: the actual date the obligation to pay arose. Do not use the date of payment unless it matches the accrual date.
- Total amount of expenditure incurred: the full cost of the installation in Hong Kong dollars. Do not include amounts that have been or will be reimbursed by any person.
- Amount of any government grant or subsidy received: enter HK$0 if none.
Part 4 - Declaration
The declaration must be signed by the person who signs the profits tax return for the relevant year.
- Signature: a handwritten signature of the taxpayer or an authorised person.
- Date: the date the declaration is signed.
- Name of signatory: printed full name.
- Capacity: e.g. sole proprietor, director, partner, manager, secretary.
Common mistake: the signatory must be the same person who signs the profits tax return for that year of assessment. If the return is signed by a tax representative, that representative must also sign this form.
Part 5 - Continuation sheet (if needed)
If more than one installation is being claimed, do not list them on the main form. Use a separate continuation sheet for each additional installation. Each continuation sheet must repeat the taxpayer name and building address in the header, and be signed and dated identically to the main form.
Important: do not merge multiple installations into one line. Each installation requires its own row and its own continuation sheet if the main form does not have enough space.
General note
The form itself does not state a deadline or a fee. The deduction is claimed by filing this form together with the profits tax return for the relevant year of assessment. No separate payment is required for filing.
Download the current form - always file the version on the issuing authority's site, not a copy.
Sources
More on the forms library.